Sacramento’s office vacancies rose slightly throughout 2020 with very light demand and little to no office product being added. Q4 2020 saw office demand in the red for the first time in nearly 10 years. Many companies seem focused more on short term plans and short term lease extensions while they consider how to balance work from home in the future and long term space usage strategies. The Sacramento region is driven by the Government’s demand for space which, until now, has been static. However, should the State of California adopt permanent work from home for a cross section of State employees, it could result in increased vacancies across the region in the future. Regardless, office vacancies should increase throughout the region in the future.